The visitor had a discussion with the company in the conference room regarding their concerns, which mainly included:

1. Overall business performance of the company in the first half of the year?

Faced with the complex development situation, the company scientifically laid out, seized opportunities, and made every effort to explore the market. The industry's advantageous position remained stable, and high-quality development continued to be maintained in the first half of the year. The company achieved a revenue of approximately 112.49 billion yuan, a year-on-year increase of 6%; The net profit attributable to the parent company was approximately 5.9 billion yuan, a year-on-year increase of 51.4%. Thanks to the optimization of product and business structure, profitability has continued to grow, with gross profit margin increasing to 21.7% and sales profit margin reaching the best level in the same period of nearly five years.

2. What is the performance of the company's large bore engine business?

In the first half of the year, the company sold approximately 3600 units of M-series large bore high-speed engines, which was basically the same as the same period last year. Based on current market performance and the company's order situation, it is expected that large bore engines will achieve steady year-on-year sales growth and significant optimization of product structure throughout the year. With the development of global big data center business, the development prospects of the large bore engine industry are promising, and the company has sufficient production capacity. With significant product technology advantages and flexible production and sales mechanisms, the company will continue to promote product structure optimization, continuously break through key high-end markets, and further enhance market share and profitability.

Image source: Weichai Information

How does the company envision future dividend policies?

In recent years, the company has maintained a dividend frequency of twice a year and a high dividend ratio, insisting on timely and high proportion returns to shareholders. The dividend ratio and amount are among the top in the industry. The company will further increase the cash dividend ratio to 55% in mid-2024. In the future, the company will continue to improve its business performance and create greater value for its shareholders as always.

What is the outlook for the development of the heavy-duty truck industry in 2024?

From January to July 2024, the heavy-duty truck industry has sold approximately 563000 vehicles (according to data from the China Association of Automobile Manufacturers), a year-on-year increase of 2.4%. It is expected that the heavy-duty truck industry will achieve stable year-on-year growth throughout 2024. In terms of domestic sales, considering the average replacement cycle and policy support, the heavy-duty truck market is facing opportunities for stock renewal. The penetration rate of natural gas heavy-duty trucks is expected to continue to remain high, and the domestic market situation will continue to improve; In terms of exports, there is huge potential for tapping into the future export market. The influence and competitiveness of China's heavy-duty truck industry continue to increase, and overseas markets are expected to maintain high-speed growth.

5. Weichai Lovol Smart Agriculture Management Situation and Prospects?

In the first half of 2024, Weichai Lovol Smart Agriculture sold approximately 77000 units of various agricultural machinery products, a year-on-year increase of 17.5%; The transformation results of large-scale and high-end product structure are prominent, with the proportion of tractors with over 100 horsepower increasing by 8 percentage points year-on-year, and the proportion of tractors with over 200 horsepower increasing by 3 percentage points year-on-year; Achieved a revenue of approximately 9.8 billion yuan, a year-on-year increase of 28.1%, reaching the best level in history for the same period; Achieve a net profit of approximately 560 million yuan, a year-on-year increase of 34.8%. Weichai Lovol Smart Agriculture will actively respond to the national rural revitalization strategy, continue to leverage the competitive advantages of CVT powertrain and power shift high-end products in the market, and promote the continuous upgrading of agricultural machinery and equipment.

6. What is the performance of the company's smart logistics business?

In the first half of 2024, the company's holding subsidiary, German Kaion Group, achieved a revenue of approximately 5.74 billion euros, a year-on-year increase of 2.1%, setting a new historical high for the same period. Among them, the forklift business achieved a revenue of approximately 4.31 billion euros, and the supply chain solutions business achieved a revenue of approximately 1.45 billion euros. Benefiting from the improvement of business quality and operational efficiency, Kaiao Group's profitability continues to increase. In the first half of 2024, a net profit of approximately 180 million euros was achieved, representing a year-on-year increase of 24.1%; The adjusted pre tax profit margin is about 7.8%, an increase of 1.6 percentage points year-on-year.

Article source: Reprinted from Weichai Power